Capital Equipment News December 2017

For informed decision-making DECEMBER 2017

INTO 2018 WITH HOPE

www.maximum-equipment.com

www.alcosafe.co.za

www.loadtech.co.za

www.renicoplant.co.za

www.cummins.com

www.wackerneuson.co.za

www.mercedes-benz.co.za/trucks

www.elbequipment.co.za

www.doosan.co.za

www.saxeniequipment.co.za

www.iveco.co.za

INTO 2018 WITH HOPE

CONSTRUCTION NEWS 32 New Caterpillar Utility Compactors with rental in mind 33 Dura launches new 22 t Lovol excavator in SA TRANSPORT & LOGISTICS NEWS 34 FUSO Trucks Southern Africa offers flexible finance packages 36 FAW produces 3 000 th local truck MINING NEWS 38 Sandvik adds new intelligent solution to its AutoMine portfolio 39 Cummins breaks ground for new premises at Waterfall 40 First Joy reclaim feeder manufactured in Wadeville COMMENT 4 Is Africa still rising? HAULING 6 Hauling new payloads TRANSPORT 10 Connecting the strategic footprint dots TRANSPORT 14 Expanding the commuter bus family FINANCING 18 Closing the financing gap MINERAL PROCESSING 22 Unleashing novel turnkey mineral processing solutions CRUSHING & SCREENING 26 Restating the Pilot modular prowess PROFILE 30 Pioneering the best-of-breed model CONTENTS Capital Equipment News is published monthly by Crown Publications Editor: Munesu Shoko capnews@crown.co.za Advertising manager: Elmarie Stonell elmaries@crown.co.za Design: Anoonashe Shumba Publisher: Karen Grant Deputy publisher: Wilhelm du Plessis Circulation: Karen Smith PO Box 140 Bedfordview 2008 Tel: (011) 622-4770 Fax: (011) 615-6108 www.crown.co.za Printed by Tandym Print The views expressed in this publication are not necessarily those of the editor or the publisher. FEATURES REGULARS Total circulation Q3 2017: 3668

CAPITAL EQUIPMENT NEWS DECEMBER 2017 2

http://crown.co.za/capital-equipment-news

EDITOR'S COMMENT

IS AFRICA STILL RISING?

O n the back of a ferociously volatile global economy, the ‘Africa rising’ sto- ry has been under severe pressure for the past two years. As the growth outlook in developed markets remains pedestrian, the majority of emerging markets are also expe- riencing the full brunt of the slowdown. Africa’s growth momentum has slackened, and according to Deloitte’s Construction Trends Report , growth in sub-Saharan Africa fell to 3,5% in 2015, before going down to 1,4% in a difficult 2016, the first time the region’s growth has been lower than the global average since 2000, and significantly far off the 5-7% average experienced by the region over the past decade. The Deloitte report further notes that, of sub-Saharan Africa’s major four economies

– South Africa, Nigeria, Angola and Kenya – one is rapidly contracting (Nigeria) while two are static (Angola and South Africa). It is only Kenya that is somehow bucking the downward trend and growing at a decent emerging market rate of close to 6%. It is, however, worrying to note that many of these powerhouse economies in Africa are at a tipping point in which politics have begun to firmly trump economics, especially in South Africa, the biggest economy on the continent, as well as Kenya, regarded as the shining armour of East Africa. For example, some political decisions in South Africa in 2017 overshadowed the big recent price gains in bulk commodities such as iron ore, metallurgical coal, manganese and chrome ore. Kenya’s election debacle is still threatening to reverse all the economic gains amassed in the previous few years. Nonetheless, it is encouraging to see that the World Bank notes that growth in sub-Saharan Africa is recovering, supported by modestly rising commodity prices, strengthening external demand and ending drought conditions in a number of countries. Growth in the region is forecast to pick up to 2,6% in 2017 and to 3,2% in 2018, centred on moderately rising commodity prices and reforms to tackle macroeconomic imbalances in some countries. Growth in non-resource intensive countries is predicted to remain solid, buttressed by infrastructure investment, resilient services sectors and the recovery of agricultural production. For example, Ethiopia is forecast to expand by 8,3% in 2017, Tanzania by 7,2%, Ivory Coast by 6,8% and Senegal by 6,7%, all reinforced by public investment. The supply chain is always a good measure of the health of the recipient sectors. Unlike in 2016, most equipment suppliers report improving business activity across Africa, despite the slow growth in a number of economies. Recent investments in footprint expansion and capacity building projects by several international OEMs and their local dealers are also a key indicator of their confidence in the future of Africa, especially

considering that the continent is home to 30% of all global mining activities and a lot of infrastructure development still has to happen. For example, Komatsu has invested in a new facility in Gauteng, South Africa that consolidates its head office operations, warehouse and distribution centres as well as workshops and remanufacturing facilities into one centralised property. The development of the campus signals the company’s unwavering commitment to doing business in the region. Elsewhere, another landmark investment this year was Caterpillar’s new parts distribution facility in Kempton Park, near Johannesburg, South Africa. This was later followed by the launch of its Equity Equivalent Investment Programme (EEIP) with the South African Department of Trade and Industry, representing one of the OEM’s largest investments in Africa to date. Caterpillar’s EEIP commitment is to localise a cumulative R1,3 billion (about US$90 million) of component content over the next 10 years, representing the largest ever EEIP in South Africa. Both these investments are part of the previously announced plan of Caterpillar, its independent dealers and the Caterpillar Foundation to invest more than $1 billion in countries throughout Africa over five years. Meanwhile, Cummins Southern Africa’s massive US$100 million plus investments into growth and support projects in Africa in the past seven years also herald its long- term confidence in the continent. Although current stable macro-economic factors are very important in any company’s investment decisions, it is encouraging to see that these capital investments are based on a long-term view. I believe it is worthwhile to identify potential, not just for today, but also for well into the future. I am of the view that the strongest medium to long-term growth will have to be garnered in Africa. The continent is deemed a new frontier which presents a wealth of opportunity, and there has to be plans for a any serious OEM to establish some sort of footprint on the continent. b

Munesu Shoko – Editor

capnews@crown.co.za

@CapEquipNews

CAPITAL EQUIPMENT NEWS DECEMBER 2017 4

HAULING

The new T 236 marks Liebherr’s entry into the 100 t rigid hauler class.

KEY TALKING POINTS

Liebherr is entering the 100 t class size of the rigid dump truck market for the first time with its new T 236 mining truck with a diesel electric drive system, said to represent a new direction by being the first truck with such a configuration in this class size. Having successfully completed the product validation phase, it recently started its field operation trials at the Erzberg iron ore mine in Austria. Munesu Shoko recently visited the mine to witness the start of the testing phase. HAULING NEW PAYLOADS

Liebherr enters the 100 t class size of the rigid dump truck market for the first time with its new T 236 mining truck with a diesel electric drive system

The Liebherr Group expects a strong finish to what it anticipates to be a record year in turnover in 2017

CAPITAL EQUIPMENT NEWS DECEMBER 2017 6

L iebherr has demonstrated its contin- ued innovation with the introduction of its T 236 mining truck. Capitalising on decades of proven prowess in off-highway truck technologies, the T 236 benefits from Liebherr’s electric drive system innovations, further demonstrated by the introduction of the vertically integrated Litronic Plus Gener- ation 2 AC drive system. The new rigid dump truck, with a diesel electric drive system, marks Liebherr’s entry into the 100 t class and is said to be the first of its nature in this class with a four-corner, oil immersed braking system. Initially unveiled last year at MineExpo, the T 236 is said to represent a new direction and increased expansion of Liebherr’s mining product range. Dr. Burkhard Richthammer, MD of Design and Engineering at Liebherr-Mining Equipment Colmar SAS, notes that the new truck was developed closely with many of the OEM’s customers in order to meet market requirements that ultimately speak to maximum performance with the lowest possible operating costs. As part of the T 236’s product development process, an intensive product validation phase was finalised this year. The tests were designed to evaluate the product using several different parameters, including specific function and performance tests for the systems and structural evaluations. Extreme driving manoeuvres were also used to evaluate operator safety, load stability and machine performance during trials. “We can proudly share that the T 236 has successfully completed the testing phase and has recently started its field operation trials at the Erzberg iron ore mine in Austria,” says Dr. Richthammer. Capital Equipment News was part of a sizeable group of about 40 journalists who recently witnessed the T 236 being put through its paces at the Erzberg mine. Dr. Richthammer explains that the Erzberg mine was carefully chosen as the testing ground because it offers a varied and interesting set of conditions for field trials, while it also has an existing fleet of mining truck models in the 100 t class for the T 236 to work alongside for direct comparison. “The alpine mine is active for more than 330 days each year and is a continuous 24- hour operation. The climate conditions can vary from snow with temperatures of -20°C to some scorching summer heat with in-pit temperatures that can go as high as 40°C. A particularly interesting climate profile is that in a matter of hours, it will intermittently switch between rain and sunshine,” says Dr. Richthammer. Additionally, Erzberg offers both uphill and downhill haulage cycles, presenting challenging haulage profiles due

a constant variation of grade. In the coming year, Liebherr will roll out further pre-series units to selected operations to further validate the truck’s capabilities before its commercial launch. The various sites are currently planned for South Africa and other selected global locations. A decision for commercial availability will be made after the tests, but Dr. Richthammer predicts it may take a further two to three years before the truck is commercially available. Key value proposition Designed to carry up to 100 t payload, the T 236 can be ideally paired with Liebherr’s R 9100, R 9150, R 92 00 or R 9250 mining excavators. A key talking point on the T 236 is Liebherr’s Litronic Plus Generation 2 drive system, which introduces the advanced Active Front End technology, and is said to be the next big thing in electric drive system design. Making use of electrical energy during retarding events, the drive system is able to deliver controlled engine speed with almost no fuel consumption. “The Active Front End control and electric drive work in harmony to use less fuel and cause less wear on components, translating into greater cost-savings,” says Dr. Richthammer. “As the first diesel electric truck in the 100 t class to incorporate an oil immersed braking system with four-corner braking control, the T 236 is geared to deliver sound reliability and performance, even in tough operating conditions.” With its high take-off torque and continuous power-to-ground capability, the T 236 is less sensitive to grade and payload variations, resulting in greater productivity. Vertical integration of Liebherr designed and manufactured components ensures that the truck’s powertrain achieves optimal system efficiency and performance throughout the full range of applications. The truck’s innovative, variable hydraulic system lowers machine parasitic losses to provide maximum power, while lowering fuel consumption when power is not required. Easy serviceability and safety To ensure the safety of maintenance technicians, the T 236 is equipped with a double pole battery, starter motor and hoist system isolators as standard. In addition, the Liebherr truck provides an innovative drive system inhibit, electrically interlocked to grounding devices for each plug and drive power module. Operating on a voltage level of 690 VAC and 900 VDC enables regular site technicians to carry out system maintenance. Liebherr’s Litronic Plus Isolation system, said to be an industry first, ensures the safety of maintenance personnel through the elimination of hazards by design.

Making use of electrical energy during retarding events, the drive system is able to deliver controlled engine speed with almost no fuel consumption

The T 236 is said to be the first of its nature in the 100 t class with a 4-corner, oil immersed braking system

The T 236 has successfully completed the testing phase and has recently started its field operation trials at the Erzberg iron ore mine in Austria

CAPITAL EQUIPMENT NEWS DECEMBER 2017 7

HAULING

The Erzberg mine was carefully chosen as the testing ground because it offers a varied and interesting set of conditions for field trials.

The T 236 has successfully completed the testing phase and has recently started its field operation trials at the Erzberg iron ore mine in Austria.

“The revolutionary in-line electrical power train layout minimises cable length, while the maintenance free IP 68-rated plug-and-drive power modules ensure reliable operation in all-weather conditions. Combined with the extended life service intervals and minimised maintenance time offered by the ground-level service points, the T 236 ensures maximum uptime,” says Dr. Richthammer. For easy service access, the alternator is remote mounted and connected to the splitter box with a drive shaft. The electrical control cabinets of the drive are in maintenance-free segregated modules, ensuring protection in the tough mining environment. The power modules only control the drive, operating with 600 Volts AC and 900 Volts on the DC link to remain in a class of low tension, while all auxiliary systems are hydraulically driven – allowing regular site electricians to work on the system. An additional benefit of the external power module grounding system in the powertrain and positive drive isolation is that it allows work to be done on the machine while the engine is running. Safety features in the truck’s cab, such as dual-side access and incorporation of ROPS comparable to a 150 t class truck, were engineered during the initial design process, while a recessed, full-size passenger seat allows for increased visibility. Market conditions Speaking of current global market conditions, Stefan Heissler, member of the Board of Directors at Liebherr-International AG Bulle (Switzerland), says despite the tough market environment in 2016, the Liebherr Group still managed the third-highest turnover in the group’s history, with total sales of €9 009 million. “We have seen market conditions improving in 2017 along with the overall global economy,” says Heissler. “We expect sustained growth for the rest of the

The in-line electrical power train layout minimises cable length, while the maintenance free IP 68-rated plug-and-drive power modules ensure reliable operation in all-weather conditions.

year and into 2018, both in developed and emerging markets. He is encouraged by the International Monetary Fund’s projection which expects global growth to rise to 3,6% in 2018, compared with 3,1% in 2016. “Between more favourable conditions and our continued investment in the company’s growth, the Liebherr Group is on track for a record turnover in 2017. Looking at the first six months of 2017, our turnover was nearly €4,8 billion. This represents a 6,4% year-on- year increase compared with the turnover of €4,5 billion during the same period in 2016,” says Heissler. Heissler says this year’s growth by region has been varied, with significant gains in Eastern Europe and moderate growth in Western Europe offsetting decreasing turnover in the Middle East, Africa and the Americas. “Compared with 2016 – and even the previous years – we have seen a significant jump in incoming orders. While orders in the past years hover around €4,3 to €4,4 billion, in the first six months of 2017 we had more than €5,2 billion in orders,” he adds. Speaking of the rest of 2017, Heissler says the Liebherr Group expects a strong finish to what he anticipates to be a record

year in turnover. “We expect nearly all our product divisions to improve, with the most significant growth coming from the Earthmoving, Mobile Cranes, Tower Cranes, Mining and Tool and Automation divisions,” says Heissler. To further ensure growth, the group will continue to invest substantially in its international production facilities, as well as distribution and service network. “In 2017, we will invest €733 million in total. That equates to a 7,4% investment rate, which remains in line with past years.” Heissler says the group’s competitive edge is its long-term thinking, including its approach to cultivating innovation. “We take a steady, patient approach to all what we do, from the organisation of our company, to our investments and employees,” he says. Liebherr’s strong financial footing and its diversified approach allows it to continuously invest in research and development (R&D), key technologies and its people – all very critical to creating innovation. “As a result, we will be able to continue to secure the innovation necessary to maintain a competitive edge across all our industries, as demonstrated by the T 236 mining truck,” concludes Heissler. b

CAPITAL EQUIPMENT NEWS DECEMBER 2017 8

TRANSPORT

MB AfroAsia SA has purchased Nolan Truck, an existing Iveco dealership in Bloemfontein.

CONNECTING THE STRATEGIC FOOTPRINT DOTS MB AfroAsia SA has added yet another strategically located Iveco dealership to its ever-growing MB Truck City footprint, completing a strategic network presence in all key corridors of South Africa, writes Munesu Shoko.

SCAN QR CODE TO WATCH THE VIDEOS

M B AfroAsia SA has further expand- ed its MB Truck City footprint with the recent purchase of an exist- ing Iveco dealership in Bloemfontein, Free State, South Africa. The acquisition – which follows hard on the heels of the recent pur- chase of MB Truck City Cape Town in 2014 and MB Truck City Johannesburg in 2016 – further underlines MB AfroAsia SA’s strong commitment to connecting the network dots in all strategic key corridors. Speaking at the official launch on October

5, 2017, Alfred Da Costa, Chairman of MB AfroAsia SA, said the Bloemfontein dealership, previously Nolan Truck, has a rich history and its location is very strategic, especially considering that Bloemfontein is at the centre of South Africa and the city is a renowned logistics hub. “Following the successful acquisition of MB Truck City Cape Town and MB Truck City Johannesburg, we set our sights on Bloemfontein next. It is an important location because many of our customers’ trucks run

CAPITAL EQUIPMENT NEWS DECEMBER 2017 10

KEY TALKING POINTS

MB Truck City Bloemfontein completes a strategic network presence for MB AfroAsia SA

The Bloemfontein dealership has a current workforce of 30 people

Truck City Bloemfontein is a fully-fledged operation that carries the full range of Iveco commercial vehicles.

MB Truck City’s vision is to become the number one supplier for Iveco in sub-Saharan Africa

Watch Brian Steenkamp, Iveco Head of Network for sub-Sahara Africa, speaking to Capital Equipment News at the official launch.

Watch Mark Croxon, CEO of MB Truck City, speaking to Capital Equipment News at the official launch of MB Truck City Bloemfontein.

MB Truck City Bloemfontein is a fully-fledged operation that will carry the full range of Iveco commercial vehicles from 3,5 t to extra heavy duty units

through this area, which is absolutely critical for us,” says Da Costa. Brian Steenkamp, Iveco Head of Network for sub-Saharan Africa, says Bloemfontein is a centre point for South Africa and represents a very strategic location for MB AfroAsia SA in its quest to complete a strategic MB Truck City network presence. Mark Croxon, CEO of MB Truck City, is pleased with the acquisition of the Bloemfontein dealership, which he believes gives MB a significant advantage in its quest

grows. MB Truck City Bloemfontein is a fully-fledged operation that will carry the full range of Iveco commercial vehicles from 3,5 t to extra heavy duty units, ranging from passenger, long haul to off-road. “Our vision is to become the number one Iveco commercial vehicle supplier in sub- Saharan Africa, and become the benchmark dealer in the process,” says Croxon. “This will be achieved through a relentless focus on our key growth pillars – a customer- centricity approach and retaining the best

to improve customer support and backup in South Africa. “We have now connected all the dots in terms of our network. Bloemfontein is vital to us because of the large number of Iveco trucks passing through the Free State from Johannesburg to Cape Town, and vice- versa,” says Croxon. Bold vision The Bloemfontein dealership has a current workforce of 30 people, which Da Costa says will be bolstered as the business

CAPITAL EQUIPMENT NEWS DECEMBER 2017 11

TRANSPORT

Speaking at the official launch, Alfred Da Costa, Chairman of MB AfroAsia SA, said the Bloemfontein dealership, previously Nolan Truck, has a rich history and its location is very strategic.

support from CNH Industrial, reiterating that recent huge investments into an assembly facility and a parts centre in South Africa are testimony that the principal is committed to supporting its dealers and customers in the sub-Saharan African region. Steenkamp says Iveco South Africa’s USD70- million investment in an assembly plant in Rosslyn, Pretoria in 2014 was a key starting point in showcasing CNH Industrial’s long-term commitment, not only to the South African market, but sub-Saharan Africa as a whole. The assembly facility accommodates several assembly lines for Iveco’s ranges of medium, heavy duty and extra heavy duty trucks, as well as complete city and inter-city buses. A 60:40 joint venture between Iveco and the Larimar group, a bus bodybuilding company and operator of the Putco buses, the assembly plant started production in July 2014. This was further complemented by another major investment into a parts distribution centre in Centurion. Steenkamp notes that due to difficult economic conditions, the market is fast changing; fleet operators are sweating their existing assets and are looking at ways of extending lifecycles of their existing capital equipment. As a result, he sees more opportunity on the aftermarket side of the business, hence the significance of a large parts stockholding and strong support network to cater for the aftermarket needs of customers. Steenkamp believes that focus is no longer based on the volume of customers, but rather a value proposition that saves customers money to help them navigate the difficult economic conditions. He notes that this can Mark Croxon, CEO of MB Truck City, is thrilled with the acquisition of the Bloemfontein dealership, which he believes will give MB AfroAsia SA a complete footprint across all strategic areas in South Africa.

Brian Steenkamp, Iveco Head of Network for sub-Saharan Africa, says Bloemfontein is a centre point for South Africa, and the dealership completes a strategic network presence for MB AfroAsia SA.

people to service our customers.” Croxon says MB Truck City Bloemfontein’s engagement with its customers on every touch point will be its ultimate success factor. “We will prioritise constant information sharing, both internally, and externally with our customers and other key stakeholders,” says Croxon. “Our plans are also built on trust – a key ingredient in our quest to take this business to a whole new level. Trust increases the speed with which we can do business. Trust also builds loyalty.” Successes factors Steenkamp says the successes of both Truck City Johannesburg and Truck City Cape Town have manifested themselves in the recent investment into Truck City Bloemfontein. Steenkamp further hails MB AfroAsia SA’s commitment to the success of its business and that of the Iveco brand in the local market. “Key to their success is the quality of service to their customers. I am convinced that the successes at Truck City Cape Town and Truck City Johannesburg will be replicated at Truck City Bloemfontein.” Da Costa says MB AfroAsia SA has had some solid achievements in a very short space of time and in challenging market conditions. “We have seen significant growth and are confident to continue on the growth path. Despite fierce competition in the South African truck market, we are, together with our principal, well-positioned to raise the support level for our Iveco customers in the region,” says Da Costa. Da Costa is also very pleased with the

be realised through a combination of factors, but of greater significance is a strong support network to meet customers’ needs within acceptable timeframes. To the future Despite tough trading conditions in South Africa, Steenkamp says Iveco at large has shown growth year-on-year. “This is due to various factors, ranging from a very good product recently introduced in the local market, to a strong sales and support network through committed dealers such as MB AfroAsia SA,” he says. Looking ahead, Steenkamp says it’s pretty difficult to predict where the truck market is going, but at this stage he foresees continued tough market conditions in the next 18 months. “Thereafter we may see some improvements depending on the overall business confidence in the country. For now it’s important that we keep pushing with the right product and right network that we have in place,” adds Steenkamp. Speaking of doing the right things, Croxon believes that even in tough times, if the business continues to focus on the right things, it will be able to capture the little business that is available. “We need to remain positive and do the right things, especially focusing on our support structures to help our customers survive the tide of a downward economic environment. It’s all about offering them greater value for their hard-earned buck, thereby placing ourselves in good stead to maintain, or even increase, our share of the market,” concludes Croxon. b

CAPITAL EQUIPMENT NEWS DECEMBER 2017 12

TRANSPORT

EXPANDING THE COMMUTER BUS FAMILY

The new bus chassis is said to be specifically designed to help customers get the better of tough business conditions.

KEY TALKING POINTS

Mercedes-Benz Bus & Coach Southern Africa has introduced its new OF-1723 bus chassis, an entry-level offering that not only expands the OEM’s commuter bus line, but more importantly is developed with lower cost of ownership in mind to help bus operators navigate the current tough economic times, writes Munesu Shoko .

The OF-1723’s value offering is its significant cost of ownership improvements

T he new OF-1723 bus chassis has rolled off the production line to further extend Mercedes-Benz Bus & Coach Southern Africa’s family in the commuter bus segment. As part of the broader plan to gun for a size- able share of the local bus market, Jasper Hafkamp, Executive Director at Daimler Trucks & Buses Southern Africa, says the company has undertaken to introduce right products for the different bus segments that speak directly to customers’ needs. The plan has been put in motion with the recent launch of the OF-1723 bus chassis, which Shane Henry, Brand Manager for Mercedes-Benz Bus & Coach Southern Africa, says is a result of direct feedback from local bus operators. The new bus chassis is said to be specifically designed to help customers get the better of tough business conditions. “As Mercedes-Benz Bus & Coach, we listened to our customers who highlighted

the tough economic conditions they are operating in, as well as the limited financial resources they have to put up with. We then developed and are now introducing an entry- level bus chassis that will address the array of challenges our customers face,” says Henry. Henry believes this is the perfect time to launch the product. “When times are this tough, new products should focus on things that count – in this instance, the OF- 1723’s value offering is its significant cost of ownership improvements,” says Henry. “From the RS4 rear axles that aid highway driving and improve fuel efficiency, to the wider brakes and larger brake chambers, which mean a longer life for brake liners, we really have ensured that this product makes a tangible effect in our customers’ businesses. We see ourselves as more than just manufacturers but rather as partners and

CAPITAL EQUIPMENT NEWS DECEMBER 2017 14

Mercedes-Benz Bus & Coach Southern Africa has introduced an entry-level bus chassis, the OF-1723.

The new bus chassis is said to be specifically designed to help customers get the better of tough business conditions

Several features are aimed at improved fuel efficiency, bearing in mind that fuel constitutes a sizeable chunk of total running costs

Mercedes-Benz Bus & Coach Southern Africa has established a dedicated team for the bus segment, to give a bus-specific service

mobility solutions providers,” adds Henry.

fuel efficiency and driving comfort. “The flat torque curve characteristics mean that high torque is available at low engine speeds,” says Henry. Meanwhile, features such as the Constant Throttle Valve Engine Brake and High Boost Pressure Turbocharger further enhance fuel efficiency. The OF-1723 bus chassis also comes with the Mercedes-Benz 6-speed G85 manual transmission which works in tandem with the motor to offer improved efficiency. With its input torque handling capacity of 850 Nm, it is said to be best in its class. It is also fitted with a cable shift mechanism and larger sized gears for improved reliability. An overdrive gear for lower engine revolutions during highway operation provides sufficient torque and high power, yielding better fuel consumption. Meanwhile, with a completely new design, the RS4 rear axle is said to aid highway

driving and improve fuel efficiency, through working in tandem with other components for greater efficiency. With maintenance costs in mind, the chassis’ clutch diameter measures in at 395 mm and 3,5 mm wear depth, with a uniquely developed organic material that enables better torque transmission while dissipating heat effectively. “This ensures a longer clutch life and reduces maintenance costs,” says Henry. With durability in mind, the powder-coated chassis is designed to provide a longer and rust-free life. It has been integrated using alligator type cross members which provide rigidity and strength, increase its load- bearing ability and reduces stress on the frame. With a width of 902 mm, the frame offers greater stability to the vehicle when driving at higher speeds. Based on Mercedes-Benz’s understanding

Nuts and bolts As Henry mentions, several features have special focus on reducing total cost of ownership. Many of these speak directly to fuel efficiency, bearing in mind that fuel constitutes a sizeable chunk of total running costs. Henry believes a major competitive edge of the new bus chassis is its driveline. It is driven by the trusted Mercedes-Benz OM 906LA engine delivering 175 kW (235 hp) of power and engine torque of 850 Nm at 1 200 to 1 600 rpm. According to Henry, the engine is no stranger to the local market and has proven itself over the years. A key feature is that 90% of the torque is achieved at 1 200 rpm, translating into better fuel economy. The engine is also said to enable greater pickup and fewer gearshifts, resulting in improved

CAPITAL EQUIPMENT NEWS DECEMBER 2017 15

TRANSPORT

telematics platform, helps customers track their vehicles and is also crucial when it comes to identifying driver training needs. “FleetBoard Professional Driver Training yields highly-competent drivers that have been trained, tested and trusted,” says Hafkamp. In today’s operating environment, customers are more concerned about aftermarket support to keep their vehicles on the road with minimal downtime. Mercedes-Benz Bus & Coach Southern Africa benefits from its wide dealer and parts network, with a greater parts availability across the country. In fact, Hafkamp says, in its quest to become the number one bus supplier in the country, Mercedes-Benz Bus & Coach Southern Africa has established a dedicated bus division specifically focused on this market segment. “The bus market is changing, and we have also changed. We have established a dedicated sales and support team with lots of competence in the bus segment,” says Hafkamp. The new structure was implemented at the start of this year. Henry says the people aspect has been the major focus, and new skills dedicated to the bus market have been injected into the system. “We have adapted our business to suit our customers’ needs. As part of our new bus model, we have split the country into five regions,” says Henry. The new regions comprise the Cape Region, made up of Eastern Cape and Northern Cape; two Gauteng regions, one goes with Free State and the other with North West; Mpumalanga; as well as KwaZulu-Natal. “The new structure allows us to give a bus-specific service. We are in a transitional period, getting the business used to the new structure,” adds Henry. Tough market conditions Speaking of market conditions, Hafkamp says the overall bus market, comprising the three segments – city buses, commuter buses and coaches – has been in a decline this year. However, Hafkamp says commuters and coaches were fairly stable in 2017, compared with 2016. There has been a reverse in fortunes this year, as the city bus market enjoyed a good run in 2016. “There has been no investment into city buses this year, resulting in almost a 20% decline. However, we expect the bus market to return to a growth cycle in 2018. We have started to see a lot of enquiries again,” says Hafkamp. He reasons that many municipalities will likely be returning to market to meet their replacement cycles. “As a result, we expect the bus market to rebound in 2018,” concludes Hafkamp. b

It is driven by the trusted Mercedes-Benz OM 906LA engine delivering 175 kW (235 hp) of power and engine torque of 850 Nm at 1 200 to 1 600 rpm.

With a completely new design, the RS4 rear axle is said to aid highway driving and improve fuel efficiency.

that a comfortable driver is a safe one, the OF-1723 chassis considers the ergonomics of the driver and comes standard with a power- assisted, tiltable and telescopic steering that enables easy manoeuvring. Driver fatigue is significantly reduced as the chassis offers a shorter turning circle and a comfortable driving position. One-stop shop Mercedes-Benz Bus & Coach Southern Africa provides a range of complementary services in its quest to offer a one-stop shop for its bus customers. For example, TruckStore, its used bus and truck facility, caters for both used bus needs and trade-ins when purchasing new units. Mercedes-Benz Financial Services, which offers an in-house financial solution for

Mercedes-Benz customers, is another very crucial arm of the business, especially at a time when conventional financing institutions are shying away from financing commercial vehicles on the back of a constrained economy. This is complemented by Mercedes- Benz Service Contracts, said to be getting more popular with local customers. Henry says customers are fast understanding the importance of professional service for their commercial vehicles to ensure maximum uptime, especially at a time when any standing time is out of question. “With Mercedes-Benz Service Contracts, customers have a peace of mind as this allows them to focus on their core business than servicing vehicles,” says Henry. Meanwhile, FleetBoard, a Mercedes-Benz

CAPITAL EQUIPMENT NEWS DECEMBER 2017 16

FINANCING

VFS South Africa will provide financial services to customers of the Volvo Group’s truck and bus brands operating as part of Volvo Group Southern Africa.

CLOSING THE FINANCING GAP

As part of the Volvo Group’s plan to become a one-stop shop for all its local customers’ needs, Volvo Financial Services, the global captive finance arm of the group, has established Volvo Financial Services South Africa to help close the financing gap for Volvo Group Southern Africa truck and bus customers in the country, writes Munesu Shoko .

F or commercial vehicle owners, just like any other capital equipment op- erator, reliable trucks are assets they should have in their businesses, and are of- ten the difference between stagnation and growth. However, in a difficult economic environment where conventional financing institutions often have their appetite for risk at its lowest, funding such big-ticket purchases can be a real headache, more so for upcoming, small businesses. To close the financing gap, Volvo Financial Services (VFS), the global captive finance arm of the Volvo Group, has announced the launch of its operation in

South Africa through the newly established Volvo Financial Services South Africa (Pty) Ltd. This is VFS’s first subsidiary in Africa. Officially launched locally on November 7 2017, VFS South Africa will provide financial services to customers of the Volvo Group’s truck and bus brands operating as part of Volvo Group Southern Africa, including UD Trucks, Volvo Bus, Volvo Trucks and Volvo Construction Equipment. However, Jens Winkelmann, newly appointed country manager of VFS South Africa, says the local arm of VFS will initially cater for Volvo Trucks, Volvo Bus and UD Trucks in South Africa and services

may be extended to other Volvo Group Southern Africa brands at a later stage, when need arises. Torbjörn Christensson, president of Volvo Group Southern Africa, says the group has a very good product that is well-trusted in the local market, but financing remains a crucial element of the business. “We have the right product and support structures, but financing is such a headache for our customers,” says Christensson. “The launch of VFS in the country will provide customers with a total Volvo Group offering that includes product, service, parts and financial services.”

CAPITAL EQUIPMENT NEWS DECEMBER 2017 18

VFS South Africa will initially cater for UD Trucks, Volvo Trucks and Volvo Bus.

About VFS VFS is a global financial solution provider for the Volvo Group. It offers a full range of integrated financial solutions to dealers and customers at large. The captive finance arm of the Volvo Group was formed in 2001 and is headquartered in Greensboro, North Carolina, the United States. This is complemented by regional headquarters in Singapore, as well as in Gothenburg, Sweden. The company, which manages a net credit portfolio of over SEK126 billion (R213 billion), currently employs a workforce of 1 400 people globally, and offers financing in over 45 countries. According to Winkelmann, VFS currently covers 90% of the Volvo Group sales glob- ally, and one out of three units sold with- in the Volvo Group companies is financed through VFS. “VFS delivers services directly to cus- tomers through dealerships, so customers enjoy a one-stop shop experience. It is the first finance choice for Volvo Group prod- ucts. We facilitate the total offer for the Volvo Group,” says Scott Rafkin, president of VFS. “While VFS is a global organisation, it will leverage the Volvo Group’s local ex-

QUICK TAKE

VFS offers financial services in 45 countries around the world

VFS is a global financial solution provider of the Volvo Group

VFS South Africa will offer a range of services, including Instalment Sales Agreements, Finance Leases and Operating Leases

Financing will be initially available for Volvo Trucks, UD Trucks and Volvo Bus customers

VFS provides a full range of integrated financial solutions to dealers and customers

CAPITAL EQUIPMENT NEWS DECEMBER 2017 19

FINANCING

VFS South Africa will offer a range of services, including Instalment Sales Agreements, Finance Leases and Operating Leases.

pertise to ensure our South African cus- tomers’ unique business requirements are addressed through a tailored, competitive financing solution,” adds Rafkin. Product offering According to Winkelmann, VFS South Africa will offer a range of services, including Instalment Sales Agreements, Finance Leases and Operating Leases. These will be initially available for Volvo Trucks, UD Trucks and Volvo Bus customers only. VFS, already 100% staffed and licensed at the time of the official launch, will be fully integrated with the Volvo Group sister business areas in South Africa. “We will continue our alliance with WesBank, a division of First Rand Bank Ltd, with financial products that complement each other to further strengthen the company’s offering of Operating Lease Agreements, Instalment Sales Agreements and Finance Leases to customers,” says Winkelmann. The Volvo Group-WesBank partnership has been in existence for the past seven years and Winkelmann says the partners will build on that to further offer operating leases. He adds that the alliance has been beneficial to all partners and the VFS launch in the local market is an opportunity to further improve their service offering to customers. Although VFS will only initially be

long-term relationships really matter to its operating philosophy. He also adds that transport and infra- structure industry financing is all what VFS does, without any dilution of focus. “Our people are experts in the industry, and because we are part of the Volvo Group, we know Volvo Group products better than anyone else,” says Winkelmann. The same view is shared by Rafkin, who says VFS strives to be the most relevant partner for the Volvo Group dealers and customers because it understands the financing of capital equipment businesses, while at the same time, it has the necessary internal knowledge of the product than any other external financing institution. “We have the structure and competitive edge, based on the fact that we will be faster and easy to deal with, while at the same time we boast the understanding of the Volvo Group business.” However, Rafkin reiterates that the launch of VFS in South Africa should not be viewed as an opportunistic entry to capitalise on the traditional financing houses’ reluctance to finance truck buyers. “We view this as a complementary service to our customers,” adds Rafkin. Christensson is of the view that a down cycle offers the perfect timing for VFS to enter the market, as both Volvo Trucks and UD Trucks have been growing their

present in South Africa, Christensson says the long-term aim is to make it available to all the Volvo Group customers across Southern and Eastern Africa, as these markets are said to continue to develop. VFS will finance both new and used trucks and buses. Christensson says the financing product had to include used trucks as this is a big venture for the group at this stage, especially on the back of tough economic times. “We currently have a big inventory of used trucks within our ranks. As a group we are currently selling about 2 000 new units, and trading in about 1 000 in the process,” says Christensson. Competitive edge According to Rafkin, VFS’s dedication is its key competitive edge. “We deliver value to our customers by being easy to do business with, through our speed and industry knowledge, and by working hard to develop a long-term relationship with them throughout the business cycles,” says Rafkin. Winkelmann adds that, unlike some of the conventional funding institutions that shy away from financing capital equipment owners in challenging economic conditions, VFS is determined to remain dedicated to supporting customers’ businesses, both in good and challenging times, because

CAPITAL EQUIPMENT NEWS DECEMBER 2017 20

Volvo Group and VFS officials at the official launch of VFS South Africa on November 7 2017.

respective market shares, even in a depressed market. “We are actually selling more trucks in a depressed market. An in- house financing solution will be very handy as it will quicken and smoothen the purchasing experience for our customers,” says Christensson. Important market Christensson says the establishment of VFS in South Africa reinforces the company’s commitment to the country and Africa at large. “We remain positive about Volvo Group’s performance in the region and see many opportunities to grow our business here in the future,” says Christensson. Winkelmann says the South African market is an extremely competitive business environment and sees a great opportunity for VFS as a captive financial solution provider to present customers with a customisable transport solution. “By combining all the expertise inherent in the Volvo Group, all the way from our class-leading products, to the level of aftermarket on offer, our customers will ultimately reap the rewards of a one-stop shop,” says Winkelmann. Winkelmann says the launch of VFS in South Africa is substantiated by the importance of the market to the Volvo Group brands, more specifically Volvo Trucks and UD Trucks. He says the two brands command a combined market share of 25% in South Africa and is also UD Trucks’ biggest market outside Japan. South Africa also represented a total of SEK4,3 billion sales for the Volvo Group in 2016. He adds that while South Africa is a strategic market for the Volvo Group and VFS, more importantly, it is a gateway to South East Africa where the group sees a lot of opportunity to grow. “Over and above that, the South African commercial vehicle market is predicted to grow 50% from 2012 to 2018,” concludes Winkelmann. b

MINERAL PROCESSING

B& E International offers an innovative toll model for processing plants that reduces the upfront capital requirements for start-up mining companies.

UNLEASHING NOVEL TURNKEY MINERAL PROCESSING SOLUTIONS Backed by 40 years’ experience in the turnkey design, manufacture and operation of mineral processing plants, B&E International is revolutionising the industry with a range of solutions designed to meet specific needs for both start-up and large mining operations, across both brownfield and greenfield projects, as well as a diverse range of commodities and applications, writes Munesu Shoko .

D espite rebounding commodity prices offering some reprieve to the mining sector, caution is still very much the mining watchword as mines continue to seek better economies of scale and protection against the sort of commodity price shocks in recent years. There have been some big recent price gains in bulk commodities like iron ore, metallurgical coal, manganese and

ects the necessary greenlight. It is against this background that con- tract operation of mineral processing plants has become the new paradigm, not only in South Africa, but across the world, as mining companies look for innovative ways to avoid mammoth upfront capital expenses, reduce owning, operating and maintenance costs, while maximising productivity.

chrome ore, but many market analysts doubt whether these gains are sustainable. On the back of such uncertainty, there is a big focus on improving production process- es at existing mines, while many new min- ing businesses are looking at ways to raise capital, which is often difficult, to be able to fund all the capital projects to start operation once feasibility studies have given the proj-

CAPITAL EQUIPMENT NEWS DECEMBER 2017 22

B&E International started designing and manufacturing its own purpose-built plants some 25 years ago.

A typical tertiary crushing and screening circuit commissioned by B&E International.

Bearing in mind that a processing plant is the heart of every mine, B&E International, a specialist in crushing and screening plants with 40 years’ experience in designing, build- ing and running process plants, has taken the contract crushing and screening to a whole new level, moving away from the convention- al crushing and screening contracting model. The company has developed some innova- tive operating models that are designed to give both existing mines and start-up mining companies a peace of mind as far as both debottlenecking and optimisation of existing plants, as well as the design, construction and operation of completely new plants, are concerned. Initially just a contract crushing and screening contractor, B&E International started designing and manufacturing its own purpose-built plants some 25 years ago, but initially on an in-house basis. “As contractors we realised at the time that the equipment we specifically needed to execute our proj-

KEY TALKING POINTS

B& E International offers an innovative toll model for processing plants that reduces the upfront capital requirements for start-up mining companies

Under the BOOT model, B&E International retains the ownership of the plant for a pre-determined number of years, normally five years, and charge a toll rate depending on the production output

The customer has the option to take over the ownership of the plant after an initial five- year period, where they would then pay only the residual value of the plant based on an amortisation formula that could be agreed in advance

The model significantly cuts up-front costs for equipment, facilities and skilled personnel, while reducing ongoing operational costs

CAPITAL EQUIPMENT NEWS DECEMBER 2017 23